SPLUNK INC (SPLK) Stock Fundamental Analysis
NASDAQ:SPLK - Nasdaq - US8486371045 - Common Stock - Currency: USD
Taking everything into account, SPLK scores 5 out of 10 in our fundamental rating. SPLK was compared to 281 industry peers in the Software industry. SPLK has only an average score on both its financial health and profitability. SPLK is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year SPLK was profitable.
SPLK had a positive operating cash flow in the past year.
SPLK had negative earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: SPLK reported negative operating cash flow in multiple years.
1.2 Ratios
SPLK's Return On Assets of 3.94% is fine compared to the rest of the industry. SPLK outperforms 79.64% of its industry peers.
With an excellent Return On Equity value of 35.62%, SPLK belongs to the best of the industry, outperforming 95.71% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.74%, SPLK belongs to the best of the industry, outperforming 81.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 35.62% | ||
| ROIC | 5.74% |
ROA(3y)-7.85%
ROA(5y)-9.04%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 6.26%, SPLK is doing good in the industry, outperforming 79.29% of the companies in the same industry.
SPLK has a better Operating Margin (6.34%) than 76.07% of its industry peers.
SPLK has a better Gross Margin (79.80%) than 81.79% of its industry peers.
In the last couple of years the Gross Margin of SPLK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.34% | ||
| PM (TTM) | 6.26% | ||
| GM | 79.8% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.87%
GM growth 5Y-0.28%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SPLK is destroying value.
Compared to 1 year ago, SPLK has more shares outstanding
Compared to 5 years ago, SPLK has more shares outstanding
Compared to 1 year ago, SPLK has an improved debt to assets ratio.
2.2 Solvency
SPLK has an Altman-Z score of 2.98. This is not the best score and indicates that SPLK is in the grey zone with still only limited risk for bankruptcy at the moment.
SPLK has a Altman-Z score (2.98) which is comparable to the rest of the industry.
The Debt to FCF ratio of SPLK is 3.15, which is a good value as it means it would take SPLK, 3.15 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SPLK (3.15) is better than 68.93% of its industry peers.
A Debt/Equity ratio of 4.20 is on the high side and indicates that SPLK has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.20, SPLK is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.2 | ||
| Debt/FCF | 3.15 | ||
| Altman-Z | 2.98 |
ROIC/WACC0.62
WACC9.33%
2.3 Liquidity
SPLK has a Current Ratio of 1.62. This is a normal value and indicates that SPLK is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SPLK (1.62) is comparable to the rest of the industry.
A Quick Ratio of 1.62 indicates that SPLK should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.62, SPLK is in line with its industry, outperforming 50.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 105.68% over the past year.
Measured over the past years, SPLK shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.69% on average per year.
The Revenue has grown by 15.38% in the past year. This is quite good.
The Revenue has been growing by 18.51% on average over the past years. This is quite good.
EPS 1Y (TTM)105.68%
EPS 3YN/A
EPS 5Y32.69%
EPS Q2Q%48.04%
Revenue 1Y (TTM)15.38%
Revenue growth 3Y23.66%
Revenue growth 5Y18.51%
Sales Q2Q%18.79%
3.2 Future
Based on estimates for the next years, SPLK will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.06% on average per year.
SPLK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.00% yearly.
EPS Next Y5.2%
EPS Next 2Y12.36%
EPS Next 3Y23.71%
EPS Next 5Y16.06%
Revenue Next Year15.29%
Revenue Next 2Y14.66%
Revenue Next 3Y14%
Revenue Next 5Y16%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.90, which means the current valuation is very expensive for SPLK.
Based on the Price/Earnings ratio, SPLK is valued a bit cheaper than the industry average as 79.64% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SPLK to the average of the S&P500 Index (27.61), we can say SPLK is valued inline with the index average.
The Price/Forward Earnings ratio is 27.47, which means the current valuation is very expensive for SPLK.
Based on the Price/Forward Earnings ratio, SPLK is valued a bit cheaper than 75.36% of the companies in the same industry.
SPLK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 37.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.9 | ||
| Fwd PE | 27.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SPLK indicates a somewhat cheap valuation: SPLK is cheaper than 66.07% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SPLK indicates a rather cheap valuation: SPLK is cheaper than 81.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.82 | ||
| EV/EBITDA | 76.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SPLK does not grow enough to justify the current Price/Earnings ratio.
SPLK's earnings are expected to grow with 23.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.56
PEG (5Y)0.88
EPS Next 2Y12.36%
EPS Next 3Y23.71%
5. Dividend
5.1 Amount
No dividends for SPLK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
156.9
+0.39 (+0.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners8.43%
Inst Owner Change0%
Ins Owners1.38%
Ins Owner Change0%
Market Cap26.44B
Analysts66.32
Price Target153.96 (-1.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)41.29%
Min EPS beat(2)30.73%
Max EPS beat(2)51.85%
EPS beat(4)4
Avg EPS beat(4)93.63%
Min EPS beat(4)30.73%
Max EPS beat(4)236.74%
EPS beat(8)8
Avg EPS beat(8)107.12%
EPS beat(12)11
Avg EPS beat(12)109.14%
EPS beat(16)14
Avg EPS beat(16)118.87%
Revenue beat(2)2
Avg Revenue beat(2)7.85%
Min Revenue beat(2)1.65%
Max Revenue beat(2)14.06%
Revenue beat(4)4
Avg Revenue beat(4)4.62%
Min Revenue beat(4)0.76%
Max Revenue beat(4)14.06%
Revenue beat(8)8
Avg Revenue beat(8)6.3%
Revenue beat(12)12
Avg Revenue beat(12)5.84%
Revenue beat(16)13
Avg Revenue beat(16)3.4%
PT rev (1m)0%
PT rev (3m)0.89%
EPS NQ rev (1m)11.63%
EPS NQ rev (3m)30.86%
EPS NY rev (1m)11.32%
EPS NY rev (3m)19.58%
Revenue NQ rev (1m)1.21%
Revenue NQ rev (3m)1.43%
Revenue NY rev (1m)2.93%
Revenue NY rev (3m)4.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.9 | ||
| Fwd PE | 27.47 | ||
| P/S | 6.27 | ||
| P/FCF | 26.82 | ||
| P/OCF | 26.22 | ||
| P/B | 35.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 76.39 |
EPS(TTM)5.43
EY3.46%
EPS(NY)5.71
Fwd EY3.64%
FCF(TTM)5.85
FCFY3.73%
OCF(TTM)5.98
OCFY3.81%
SpS25.02
BVpS4.4
TBVpS-4.41
PEG (NY)5.56
PEG (5Y)0.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 35.62% | ||
| ROCE | 6.47% | ||
| ROIC | 5.74% | ||
| ROICexc | 11.15% | ||
| ROICexgc | 36.93% | ||
| OM | 6.34% | ||
| PM (TTM) | 6.26% | ||
| GM | 79.8% | ||
| FCFM | 23.38% |
ROA(3y)-7.85%
ROA(5y)-9.04%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.87%
GM growth 5Y-0.28%
F-Score8
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.2 | ||
| Debt/FCF | 3.15 | ||
| Debt/EBITDA | 8.73 | ||
| Cap/Depr | 25.62% | ||
| Cap/Sales | 0.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 283.41% | ||
| Profit Quality | 373.63% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 2.98 |
F-Score8
WACC9.33%
ROIC/WACC0.62
Cap/Depr(3y)22.77%
Cap/Depr(5y)55.33%
Cap/Sales(3y)0.63%
Cap/Sales(5y)1.72%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)105.68%
EPS 3YN/A
EPS 5Y32.69%
EPS Q2Q%48.04%
EPS Next Y5.2%
EPS Next 2Y12.36%
EPS Next 3Y23.71%
EPS Next 5Y16.06%
Revenue 1Y (TTM)15.38%
Revenue growth 3Y23.66%
Revenue growth 5Y18.51%
Sales Q2Q%18.79%
Revenue Next Year15.29%
Revenue Next 2Y14.66%
Revenue Next 3Y14%
Revenue Next 5Y16%
EBIT growth 1Y213.43%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year55.76%
EBIT Next 3Y18.62%
EBIT Next 5YN/A
FCF growth 1Y130.72%
FCF growth 3YN/A
FCF growth 5Y29.25%
OCF growth 1Y124.28%
OCF growth 3YN/A
OCF growth 5Y27.74%